SHRM’s 2026 Workplace Trends: HR Leaders Face AI, Talent Shortages and Rising Benefit Costs

Artificial intelligence, workforce shortages, rising employee benefit costs and an increasingly complex compliance landscape are reshaping how organizations manage their people in 2026.

Those were the key themes discussed during a recent episode of Let’s Talk HR, where host Rick Jenkins sat down with Herb Dew, Chairman of the Board of HTI (Human Technologies, Inc.), to examine SHRM’s Top Workplace Trends for 2026 and what they mean for employers.

While each trend presents unique challenges, Dew said they all point toward one common reality: HR professionals are spending less time on administrative work and more time focusing on people.

“The technology isn’t replacing the human relationship. It’s eliminating a lot of the paperwork, compliance tasks and repetitive processes so HR professionals can spend more time working directly with employees,” Dew said.

AI Is Changing HR—But People Still Make the Decisions

Artificial intelligence has become one of the fastest-growing tools in recruiting and human resources, helping organizations automate tasks such as resume screening, interview scheduling, onboarding and documentation.

Dew said AI is delivering significant productivity gains but cautioned against relying on it for final hiring decisions. As organizations increasingly use AI to review applicants, concerns have emerged over potential bias and discrimination if the systems are trained on flawed or incomplete data.

“AI is only as good as the data used to train it. We’re still going to need people making hiring decisions, especially when there’s the possibility of unintended discrimination,” Dew said.

Jenkins also raised a concern shared by many employees: whether AI will eventually replace their jobs. Dew believes the answer depends largely on the industry.

Manufacturing jobs in the Southeast are more likely to use AI as a productivity tool, while certain white-collar professions—particularly software development and administrative work—could see more significant disruption in the coming years.

Benefits Continue to Put Pressure on Employers

Health insurance remains the largest employee benefit expense, but Dew said another cost often receives less attention: paid time off.

As companies compete for talent, many have expanded vacation policies and flexible leave programs, creating additional financial pressure.

“The hidden cost over the last several years has really been PTO. Organizations are offering more time off to stay competitive, and that’s become a significant benefit expense,” Dew said.

The Talent Shortage Isn’t Going Away

Despite economic uncertainty, employers continue to struggle to find qualified workers.

Referencing SHRM research showing nearly 70 percent of organizations struggled to fill full-time positions in 2025, Dew said the challenge remains rooted in historically low unemployment. With unemployment hovering around 4.3 percent, companies continue competing for the same limited pool of available talent.

Retention, however, may be an even greater challenge.

Dew said today’s younger workforce is far more willing to change employers than previous generations, making career development and training essential to keeping employees engaged.

“If you don’t have good training and development and can’t show employees a pathway to learn, you’re not going to keep them,” Dew said.

Inclusion Remains the Goal

The discussion concluded with one of HR’s most sensitive topics: evolving workplace compliance and inclusion.

Rather than focusing on politically charged terminology, Dew encouraged business leaders to concentrate on creating workplaces where every employee feels respected, welcomed and included. He pointed to SHRM’s recommendation that organizations emphasize inclusion and engagement as a practical approach to navigating today’s evolving workplace expectations.

“If you’re making sure everyone feels included, I think everything else falls into place,” Dew said.

Jenkins said the conversation reflects the reality many executives face as workplace expectations continue to evolve.

“Technology, talent and workplace culture are all changing at the same time. Organizations that adapt while keeping people at the center of every decision will be best positioned for long-term success,” Jenkins said.

As SHRM’s 2026 workplace trends continue to unfold, the discussion underscored a consistent message: while technology and workplace policies will continue to evolve, investing in people remains the most important strategy for building resilient organizations.